Controversial plans to turn historic Hawksworth Hall into a housing estate will go to a public inquiry.

Villagers of Hawksworth, near Guiseley, gathered a petition with more than 1,000 signatures opposing plans sent to Leeds City Council seeking permission to convert the hall into three houses and build five new homes in the grounds.

Pudsey MP Paul Trusswell welcomed the order for an inquiry and the chance for Deputy Prime Minister John Prescott to rule on the plan.

He said: "The Hall is an historic and significant site. I share local people's view that the proposed development would have a significant effect on it and its green belt setting.

American millionaire Jay Hawkesworth Elias Jnr was granted planning permission by Leeds City Council in June to make the Grade II listed building a private dwelling. Last month he submitted an offer to buy the hall, which is on the market for £1 million.

Residents back Mr Elias Jnr, who has said he will bequeath the building to the village if his bid succeeds. The charity Scope now owns the hall.

Mr Truswell said: "One of the issues that the inquiry will take into account is whether the overall development is needed to secure the future of the hall. Clearly, if other potential purchasers such as Mr Hawkesworth Elias believe they can afford to buy and restore the hall without also building around it, then this should be taken into account."

A spokesman for villagers campaigning in favour of Mr Elias's bid said: "We are pleased with the decision to hold a public inquiry - it will bring everything out in the open."

A Leeds City Council spokesman said a plan to change use from a children's home for cerebral palsy sufferers into houses had been considered.

A Scope spokesman said it had a statutory responsibility to get the maximum possible benefit from all property sales. "It would be contrary to the interests of this aim to discuss the sale of the property in any public arena at this time," he added.

A date for holding the inquiry has still to be fixed.